Yesterday, KPS’ share price surged 5.2% or 8 sen to end at RM1.62 backed by high trading volume. Chart-wise, a bullish “Marubozu” like candlestick had broken out of the downward-sloping trend line. With the trend line resistance taken out, the technical picture suggests that the long term downtrend may have come to an end. Moreover, positive readings from key momentum indicators (MACD, Stochastic and RSI) are suggesting that buying pressure is gradually piling up. We reckon follow through buying interest could rally the share towards its next resistance level of RM1.66 (R1) and possibly RM1.82 (R2) next, while a stop-loss should be placed just 3 bids below the trend line support at RM1.50 sen.

 

Source: Kenanga